SET-listed developer SC Asset Corporation Plc has confidence in economic growth over the next four years as it aims for a combined revenue of 150 billion baht between 2023 and 2027.
Chief executive Nuttaphong Kunakornwong said the housing market was expected to perform well in 2023 due to an increase in demand, including from foreign buyers who were returning despite the negative impact of rising interest rates.
"The economy is projected to grow between 3-4% this year and this momentum should continue into 2024," he said. "The general election will increase public confidence and provide fresh hope for the future."
To take advantage of these opportunities, SC will invest 25 billion baht annually between 2023-27.
Of this amount, 80% would be earmarked for the company's housing development business, while the remaining 20% would be allocated to recurring income business.
It aims to have a combined revenue of 150 billion baht over five years with 20% of this amount coming from recurring income.
In addition to its existing recurring income, led by office towers with a total lettable area of 120,000 square metres, SC plans to expand into two new sectors, hotels and warehouses, which have significant growth potential.
"We aim to have 1,000 hotel rooms in three years, starting with Yahn Ratchawat with 78 rooms which opened this month," he said. "We will spend 2.5 billion baht to develop a new hotel on Sukhumvit Soi 29 slated for 2025 and in Pattaya in 2025."
Through a partnership with e-commerce logistics services Flash Group, SC aims to have 1 million sq m of warehouse space by 2030 with 150,000 sq m being operated within this year.
Mr Nuttaphong said the firm also has recurring income from apartments for rent in the US where it invested a total of US$60 million.
It will spend $20 million per year in 2023-2024 to acquire additional properties in the US and will exit the market in 2026.
SC will launch a total of 25 new projects this year worth a combined 40 billion baht, comprising 22 low-rise housing projects worth 30 billion and three condo projects worth 10 billion.
The price range for low-rise houses will be from 2.5 million baht to more than 150 million, which will be the first time it has units priced above 100 million.
Condo prices will range from 2 million baht to 400 million baht.
Revenue will reach a total of 25 billion baht, an increase of 16% from 21.5 billion baht in 2022 which grew 11% over 2021.
Over 95% of revenue will come from the firm's residential development business.
